NEW showed up on my gap up scan. I didn't take the trade after the first bullish OR bar because it was too close to the first resistance level I had identified from the daily view. After a healthy pullback, NEW managed to hold support of the low of the OR bar and formed a bullish hammer reversal bar. I entered the trade as soon as the high of the hammer was taken out. I managed the trade by moving my stop up as price moved up. After $1+ gain, I exited 50% of the position. I closed the balance of the trade in the $43.00 area because that was just below the second level of resistance and I had to leave. I didn't want to risk too much slippage which often happens with a NYSE stop order. In the end it was a good move.
Wednesday, March 15, 2006
Trade of the Day - NEW
NEW showed up on my gap up scan. I didn't take the trade after the first bullish OR bar because it was too close to the first resistance level I had identified from the daily view. After a healthy pullback, NEW managed to hold support of the low of the OR bar and formed a bullish hammer reversal bar. I entered the trade as soon as the high of the hammer was taken out. I managed the trade by moving my stop up as price moved up. After $1+ gain, I exited 50% of the position. I closed the balance of the trade in the $43.00 area because that was just below the second level of resistance and I had to leave. I didn't want to risk too much slippage which often happens with a NYSE stop order. In the end it was a good move.
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